An independent journal about the Gannett Co. and the news industry's digital transition

Thursday, July 28, 2011

DealChicken | This one isn't getting paid OT, either

"I really love being part of a community, passing along my knowledge and savings to my neighbors. I also enjoy working with the reporters and staff at the local Gannett newspapers and TV stations. Of course, it helps when you insist on working for chicken feed."

You might want to use the official DC art Jim. This is outdated. Rather than focus on the company branding, why wouldn't you focus on the revenue this product is producing? Maybe that would take too much reporting effort than your normal pith.

From the recent deals posted on initial launch sites it looks like the Deal Chicken is off to a good start, espeically in Detroit. Don't know this is comprehensive of all deals but from the numbers posted here is the ranking:

The bottom line with these scams is fairly well documented: participating businesses aren't generally getting return customers. "Coupon" or "Deal" mentality advertising ultimately generates a transient and fickle customer base, anathema to staying in the black and a waste of advertising dollars to the advertiser. Another Gannett accomplishment, courtesy of the obscenely greedy amateurs at the helm.

Hold it. If these are good numbers, let's consider the total revenue gains. Even a $20 or $30 deal would hardly generate the types of returns needed to make this a viable business. Some are even less. Reps have to be paid, deals have to be created, and the administration expenses are not for free. Plus, some ad dollars could be cannibalized from the more profitable print product.

I want it to work, too. But deals like this are effectively a drain on the overall bottom line.

1,000 of the Detroit redemptions were for a $6 theme park. That's 3 grand for house.... about the same as a one inch classified ad. Except the Deal Chicken revenue has to be split between the house, the rep, the infrastructure, the AR, etc.

Seems a disappointing attempt at messaging and branding. "Deal Chicken?" You've got to be kidding. This launch and concept could make a classic case study for HBS students as in how not to do it. What in the world? What dream team created this "big idea"?

DealChicken as an additional revenue tool? Sure. No question it'll bring in some money. DealChicken as a savior? Nope, for all the reasons stated above and in previous threads. I hope at some point corporate will look at the cost-versus-benefit ratio.

No one is saying DealChicken will be the savior, but there IS money to be made in the deal segment, and the argument that Gannett should stay out JUST because they weren't the first to mine that segment is just ludicrous.

1:12 Great point. However, Deal Chicken is getting a lot of attention and realistically, if you look at the revenue component doesn't look like it can do much in the big picture. In fact, it's just a little something Gannett latched on to, and a bit late at that. When a company is in the amount of trouble Gannett's in, and adds a bunch of corporate VP's and something like Deal Chicken is important you know you have a problem.

Deal Chicken might be making money now, making it that much more lucrative when Gannett bottoms out and sells everything off. The Chicken you are going out of your way to praise today will still have a job.....will you? Hahaha, go Chicken, indeed.

Sorry, 8:56, but Gannett has no credibility when it comes to new ideas because, well, they're throwing new ideas up against the wall every six months, and then it inevitably fails, or is just plain forgotten about.

Deal Chicken may be a winner. But pardon the employees if they've heard this hype before. And couple that with a ridiculous name for a concept, you can't blame the employees for feeling just a bit cynical about the whole thing.

Figured we'd bring this back into light to see if all the backers are still around....cities dont have enough deals, most deals making lass than 1k per day....sure sounds like the site has staying power. What came first the chicken or the egg? The egg came two years ago....day late and a couple million short. Scrap.

Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."